{"id":632947,"date":"2022-10-11T06:55:23","date_gmt":"2022-10-11T04:55:23","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=632947"},"modified":"2022-10-11T06:55:23","modified_gmt":"2022-10-11T04:55:23","slug":"best-and-worst-pensions-in-2022","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/632947\/best-and-worst-pensions-in-2022\/","title":{"rendered":"Best and worst pensions in 2022"},"content":{"rendered":"

Workers may have to rethink their retirement plans, warns a survey ranking the world\u2019s pension systems.<\/p>\n

Iceland, the Netherlands and Denmark again took the top three rankings in this year\u2019s Mercer CFA Institute Global Pension Index. But the report recommended that retirement ages need to be lifted almost everywhere in the face of mounting threats from aging populations, ballooning government debt and low birth rates.<\/p>\n

\u201cWhat we\u2019re also finding with increased education in many countries, is people are entering the workforce a bit later,\u201d David Knox, senior partner at Mercer and the report\u2019s lead author, said in an interview. \u201cYou can\u2019t enter the workforce later, retire at the same age and live longer. Something has to give.\u201d<\/p>\n

The current economic environment of reduced wage growth, rising inflation and reduced investment returns in many asset classes is also placing additional financial pressures on retirement income systems, the report found.<\/p>\n

\"\"<\/a><\/p>\n

The report\u2019s top three countries, while not immune to global economic headwinds, were again found to have sustainable and well-governed systems with a healthy mix of public and private sector pensions and a \u201chigh level of integrity.\u201d<\/p>\n

The US ranked 20th of the 44 countries surveyed, while newcomer Portugal came in at 24 and mainland China was ranked 36. Mexico, in 29th place, was singled out for improving its score significantly due to pension reforms.<\/p>\n

Thailand was ranked lowest, coming in just below the Philippines, Argentina and India. Mercer described those systems as having \u201csome desirable features\u201d but also major weaknesses that needed to be addressed.<\/p>\n

As fertility rates decline and people live longer, the United Nations predicts the portion of the world\u2019s population aged 65 or over will rise from 9.7% this year to 16.4% in 2050. Retirement ages among the countries surveyed ranged from 55 to 68, and Knox said that governments needed to encourage people to work \u201ca bit longer.\u201d<\/p>\n

The Mercer report recommends promoting higher labor force participation among older people, which will boost their savings while limiting the continued increase in retirement years.<\/p>\n

\u201cWhat we\u2019re really talking about is the living standards of retirees,\u201d said Knox. \u201cIt\u2019s much better to tackle this now than wait for that debate to happen in the future.\u201d<\/p>\n

\n

Read: South Africa budget: Trying to avoid sinking the country into a debt hole<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Workers may have to rethink their retirement plans, warns a survey ranking the world\u2019s pension systems.<\/p>\n","protected":false},"author":59,"featured_media":101676,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9880],"tags":[26],"class_list":["post-632947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/632947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=632947"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/632947\/revisions"}],"predecessor-version":[{"id":632951,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/632947\/revisions\/632951"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/101676"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=632947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=632947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=632947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}